Health Care Deal News: Spotlight on Pharmaceuticals- December 2012

Allergan, Inc. (NYSE: AGN), maker of Botox, agreed to pay $350 million upfront for SkinMedica, Inc., a privately held seller of prescription and non-prescription aesthetic skin-care products. In addition to the upfront cash, SkinMedica could receive another $25 million contingent on the acquired products reaching certain sales targets. After the deal closes by the end of 2012, Allergan plans to operate SkinMedica as a separate global business and will leverage a number of Allergan’s existing preferred customer programs with the SkinMedica product line. Its Colorescience aesthetic make-up line was not part of the sale, although its primary prescription product, Vaniqa cream, was included in the sale. In its second acquisition this year, Pernix Therapeutics Holdings, Inc. (NYSE: PTX) agreed to buy two private pharmaceutical companies, Cypress Pharmaceuticals, Inc. and Hawthorn Pharmaceuticals, Inc. Cypress markets generic pharmaceutical products while Hawthorn offers a range of branded pharmaceuticals. The $91 million deal includes $68.5 million in cash, $12.5 million in equity and $10 million payable in December 2013. Another $10 million could be made in milestone payments. It comes on the heels of a much smaller acquisition—$4.9 million—that Pernix announced in July 2012 for Great Southern Laboratories, maker of liquids, tablets, capsules, ointments and creams for other pharmaceutical companies. In the Cypress/Hawthorn purchase, MidCap Financial served as Sole Bookrunner, Administrative Agent and Joint Lead Arranger…….Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today